(Kitco News)–Gold prices set new all-time highs in February, and a “crisis of confidence” in the U.S. dollar could push prices higher still, according to strategists at VanEck.
In their latest monthly update, Imaru Casanova, Portfolio Manager for Gold and Precious Metals, and Gold Strategist Joe Foster wrote that gold’s strong performance in February was driven by safe-haven demand amid concerns over the new U.S. administration’s trade policy.
“The Trump administration’s policy-induced uncertainty, combined with rising inflation expectations and diminished consumer confidence, weighed on major stock indexes, further boosting gold’s appeal as an alternative investment and portfolio diversifier,” they said. “A key factor behind gold’s latest rally was a surge in the holdings of gold bullion-backed ETFs. Total known ETF holdings of gold increased by 2.49% in February, marking the largest monthly inflow since March 2022.”
And while a strengthening U.S. dollar and profit-taking in the last week of February triggered a pullback from the new highs, gold still finished the month trading at $2,857.83 per ounce for a monthly gain of $59.42, or 2.12%.
“The NYSE Arca Gold Miners Index (GDMNTR) gained 2.01% in February, performing significantly better than the broader equity markets, but ultimately falling short of matching the metal’s gains,” they noted. “However, year to date, gold equities have demonstrated relatively strong leverage to gold prices, rising 17.22% compared to bullion’s 8.89% gain.” […]
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